The Fund shall be, at all times, investing in activities and instruments that
are allowed under Shariah principles and shall not be investing in activities
and instruments that are prohibited under Shariah principles based on the Shariah
Adviser’s established parameters.

For local securities, we will first identify the securities which are Shariah-compliant
based on the list of securities approved by the SACSC or any prevailing Shariah
Authority in Malaysia. The Shariah Adviser will then review the securities we
propose to ensure that the investments of the Funds are in compliance with the
Shariah Adviser’s established parameters.

We adopt a strict selection process when investing in securities listed on
the Dow Jones Islamic Market Asia Pacific ex-Japan Index; we will internally
screen the portfolio and invest only in the securities set out in the approved
list provided to us on a monthly basis by the Dow Jones Islamic Market Asia
Pacific ex-Japan Index to ensure that only appropriate securities are bought.

When investing in securities other than those listed on the Dow Jones Islamic
Market Asia Pacific ex-Japan Index, we will provide the Shariah Adviser a list
of securities for screening purposes of Shariah compliance certification before
we make any investments for the Fund. All the necessary documents with the latest
information pertaining to business activities, financial statements and other
related information will be submitted to the Shariah Adviser for Shariah stock
screening process based on international standards and best practices.

To ensure strict compliance with Shariah requirements, this list of Shariah-compliant
securities will be submitted to the Shariah Adviser on an on-going basis, where
securities in the list will be reviewed for inclusion / exclusion from the list.
A particular security may change its status from being “Shariah compliant” to
become “Shariah non- compliant” due to certain factors such as reverse takeover,
mergers and acquisitions, which may result in that company’s business activities
to be non-compliant with the Shariah. Should a particular security become Shariah
non-compliant; the Fund shall exit its position or dispose the security within
a specified time frame as approved and determined by the Shariah Adviser.

The Fund is precluded from investing in transferable securities that comprise
but not limited to any of the following criteria:

This includes all interest-based conventional banks, finance houses, insurers,
moneylenders, investment companies, leasing companies, stock brokerages, futures
and options houses and other interest related businesses. However, these do
not include financial institutions which exclusively promote or provide Shariah
based financial services.

• Alcoholic Beverages;

This includes the production, packaging,
bottling, marketing, selling and/or distribution of liquor and related products.
Investments may not be made in production facilities (for example breweries).

• Gaming / Gambling / Casino / Games of chance;

This includes
the provision of these services and betting or comparable activities as well
as the production of the facilities and equipment.

• Pork production;
This includes the raising or selling of pork or pork-derived products and by-products,
the packaging, marketing and distribution of such products as well as slaughterhouses
and livestock farms that are involved in such processes.

• Non-halal food products;

This includes the production, sale,
packaging or distribution of non-halal food.

• Entertainment and leisure related to pornography or adult content;
This includes film producers, broadcasters, publishers, cinemas, cable-TV companies,
night-clubs and places of entertainment, record/music companies that are associated
with pornographic, X-rated or adult content. This also includes distributors
and marketers of such contents.

• Activities whose images are deemed to be offensive or contrary to
the teachings of Islam;

• Weapons and arms sector;

• Any other activities that are deemed non-permissible by the Shariah
Adviser.

For foreign securities, in addition to the unacceptable primary business activities,
there are several financial ratios that a company has to meet in order to be
qualified as a Shariahcompliant transferable security. The financial criteria
are as follows:

• Total debt divided by trailing 12-month average market capitalization
must be less than 33%;

• The sum of a company’s cash and interest-bearing securities divided
by trailing 12-month average market capitalization must be less than 33%;

• Accounts receivables divided by trailing 12-month market capitalization
must be less than 45%